scispace - formally typeset
Search or ask a question
Book

The knowledge-creating company : how Japanese companies create the dynamics of innovation

TL;DR: In this article, Nonaka and Takeuchi argue that Japanese firms are successful precisely because they are innovative, because they create new knowledge and use it to produce successful products and technologies, and they reveal how Japanese companies translate tacit to explicit knowledge.
Abstract: How has Japan become a major economic power, a world leader in the automotive and electronics industries? What is the secret of their success? The consensus has been that, though the Japanese are not particularly innovative, they are exceptionally skilful at imitation, at improving products that already exist. But now two leading Japanese business experts, Ikujiro Nonaka and Hiro Takeuchi, turn this conventional wisdom on its head: Japanese firms are successful, they contend, precisely because they are innovative, because they create new knowledge and use it to produce successful products and technologies. Examining case studies drawn from such firms as Honda, Canon, Matsushita, NEC, 3M, GE, and the U.S. Marines, this book reveals how Japanese companies translate tacit to explicit knowledge and use it to produce new processes, products, and services.
Citations
More filters
Journal ArticleDOI
TL;DR: The objective of KMS is to support creation, transfer, and application of knowledge in organizations by promoting a class of information systems, referred to as knowledge management systems.
Abstract: Knowledge is a broad and abstract notion that has defined epistemological debate in western philosophy since the classical Greek era. In the past few years, however, there has been a growing interest in treating knowledge as a significant organizational resource. Consistent with the interest in organizational knowledge and knowledge management (KM), IS researchers have begun promoting a class of information systems, referred to as knowledge management systems (KMS). The objective of KMS is to support creation, transfer, and application of knowledge in organizations. Knowledge and knowledge management are complex and multi-faceted concepts. Thus, effective development and implementation of KMS requires a foundation in several rich literatures.

9,531 citations


Cites background from "The knowledge-creating company : ho..."

  • ...A knowledge-based perspective of the firm has emerged in the strategic management literature (Cole 1998; Spender 1996a, 1996b; Nonaka and Takeuchi 1995)....

    [...]

Journal ArticleDOI
TL;DR: This research suggests that a knowledge infrastructure consisting of technology, structure, and culture along with a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or "preconditions" for effective knowledge management.
Abstract: A hallmark of the new economy is the ability of organizations to realize economic value from their collection of knowledge assets as well as their assets of information, production distribution, and affiliation. Despite the competitive necessity of becoming a knowledge-based organization, senior managers have found it difficult to transform their firms through programs of knowledge management. This is particularly true if their organizations have long histories of process and a tradition of business success. This research examines the issue of effective knowledge management from the perspective of organizational capabilities. This perspective suggests that a knowledge infrastructure consisting of technology, structure, and culture along with a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or “preconditions” for effective knowledge management. Through analysis of surveys collected from over 300 senior executives, this research empirically models and uncovers key aspects of these dimensions. The results provide a basis for understanding the competitive predisposition of a firm as it enters a program of knowledge management.

4,646 citations


Cites background from "The knowledge-creating company : ho..."

  • ...This type of interaction and collaboration is important when attempting to transmit tacit knowledge between individuals or convert tacit knowledge into explicit knowledge, thereby transforming it from individual to organizational level [84, 85, 86, 87]....

    [...]

  • ...Collaboration is seen as one of the key manners in which knowledge is transmitted and created within the organization [49, 74, 87, 89, 98]....

    [...]

  • ...The formal organizational structures within an organization may encourage or inhibit interactions among employees, a practice seen as vital in the effective management of knowledge [49, 87, 89, 94]....

    [...]

  • ...Nonaka and Takeuchi [87] develop a new organizational...

    [...]

  • ...Collaboration between individuals is also the basis for the socialization of knowledge [87]....

    [...]

Journal ArticleDOI
TL;DR: In this paper, the authors explore the nature of value co-creation in the context of service-dominant (S-D) logic and develop a conceptual framework for understanding and managing value cocreation.
Abstract: Central to service-dominant (S-D) logic is the proposition that the customer becomes a co-creator of value. This emphasizes the development of customer–supplier relationships through interaction and dialog. However, research to date suggests relatively little is known about how customers engage in the co-creation of value. In this article, the authors: explore the nature of value co-creation in the context of S-D logic; develop a conceptual framework for understanding and managing value co-creation; and utilize field-based research to illustrate practical application of the framework. This process-based framework provides a structure for customer involvement that takes account of key foundational propositions of S-D logic and places the customer explicitly at the same level of importance as the company as co-creators of value. Synthesis of diverse concepts from research on services, customer value and relationship marketing into a new process-based framework for co-creation provide new insights into managing the process of value co-creation.

3,114 citations


Additional excerpts

  • ...Knowledge may also be thought of as ‘tacit’ and ‘explicit’ (Nonaka and Takeuchi 1995)....

    [...]

Journal ArticleDOI
TL;DR: In this paper, the authors examined how aspects of intellectual capital influenced various innovative capabilities in organizations and found that human, organizational, and social capital and their interrelationships selectively influenced incremental and radical innovative capabilities.
Abstract: We examined how aspects of intellectual capital influenced various innovative capabilities in organizations. In a longitudinal, multiple-informant study of 93 organizations, we found that human, organizational, and social capital and their interrelationships selectively influenced incremental and radical innovative capabilities. As anticipated, organizational capital positively influenced incremental innovative capability, while human capital interacted with social capital to positively influence radical innovative capability. Counter to our expectations, however, human capital by itself was negatively associated with radical innovative capability. Interestingly, social capital played a significant role in both types of innovation, as it positively influenced incremental and radical innovative capabilities. It is widely accepted that an organization’s capability to innovate is closely tied to its intellectual capital, or its ability to utilize its knowledge resources. Several studies have underscored how new products embody organizational knowledge (e.g., Stewart, 1997), described innovation as a

3,008 citations


Cites background from "The knowledge-creating company : ho..."

  • ...In a longitudinal, multiple-informant study of 93 organizations, we found that human, organizational, and social capital and their interrelationships selectively influenced incremental and radical innovative capabilities....

    [...]

  • ...Not surprisingly, the process of innovation is commonly equated with an ongoing pursuit of harnessing new and unique knowledge (Nonaka & Takeuchi, 1995)....

    [...]

  • ...Several studies have underscored how new products embody organizational knowledge (e.g., Stewart, 1997), described innovation as a knowledge management process (e.g., Madhavan & Grover, 1998), and characterized innovative companies as knowledge creating (e.g., Nonaka & Takeuchi, 1995)....

    [...]

Journal ArticleDOI
01 Feb 2009
TL;DR: It is suggested that the competence to do global product development is both collective and distributed, grounded in the everyday practices of organizational members, and not a static embedded capability or stable disposition.
Abstract: Knoving in practice: Enacting a collettive capability in distributed organizing - In this paper, I outline a perspective on knowing in practice which highlights the essential role of human action In knowing how to get things done in complex organizational work. The perspective suggests that knowing is not a static embedded capability or stable disposition o\ actors, but rather an ongoing social accomplishment, constituted and reconstituted as actors engage the world in practice. In interpreting the findings of an empirical study conducted in a geographically dispersed hightech organization. I suggest that the competence to do global product development is both collective and distributed, grounded in the everyday practices of organizational members. I conclude by discussing some of the research implications of a perspective on organizational knowing in practice.

2,661 citations


Cites background from "The knowledge-creating company : ho..."

  • ...…examine the various strategies, routines, and techniques through which different types of knowledge are created, codified, converted, transferred, and exchanged (Nelson and Winter 1982, Leonard-Barton 1992, Hedlund 1994, Nonaka 1994, Nonaka and Takeuchi 1995, Winter 1987, Teece 1998, Hansen 1999)....

    [...]

  • ...Indeed, “knowledge” has become the watchword of contemporary organizations, and research interest in knowledge, knowledge-based organizations, and knowledge management has accelerated (Kogut and Zander 1992, Starbuck 1992, Nonaka and Takeuchi 1995, Tsoukas 1996, Teece 1998)....

    [...]

References
More filters
Journal ArticleDOI
TL;DR: In this article, the relationship between supplier involvement and new product development performance was investigated using structural equation modelling and hierarchical regression, and the effect of supplier involvement on new products' absorptive capacity (AC) on both financial and non-financial aspects.
Abstract: Firms’ performance in their new product development (NPD) is believed to be positively related with involving suppliers in the process of new product development, and also with the organisation’s capacity and capability to absorb external and internal knowledge, namely absorptive capacity (AC). Addressing a gap in the literature, this study adopts the definition and structure for AC suggested by Tu et al. (2006) to examine relationships between AC’s sub-dimensions with NPD performance, and also their moderating effects on the relationship between supplier involvement and new product development performance, on both financial and nonfinancial aspects. Data from a survey of 161 manufacturing firms are used to test the developed hypotheses using structural equation modelling and hierarchical regression. Direct and contingent effects of supplier involvement and AC on new product development performance are studied. As a result factors determining AC are found of different level of effects on financial and non...

63 citations

Journal ArticleDOI
TL;DR: In this article, the authors proposed a framework with five hypotheses, which predicts the influences of knowledge sharing and organizational innovation on the Pakistani banking sector, and the findings indicate that all of the proposed hypotheses have significant positive relationships.
Abstract: This research is among the very few studies seeking a focalized examination on the relationship between knowledge sharing within a firm and organizational innovation. This specific study establishes that the knowledge sharing and innovation processes in Islamic banks are integral parts of the survival and progress of business organizations. Knowledge sharing and creativity are essential elements in the development of innovative strategies, but few studies have sought to investigate this relationship. This study proposes a framework with five hypotheses, which predicts the influences of knowledge sharing and organizational innovation on the Pakistani banking sector. This survey scrutinizes the impacts of knowledge sharing and innovation, and its primary objective is to determine how learning in Islamic banks mediates the relationship, and enhances the performance, of Pakistani Islamic banks. The authors distributed a self-administered survey, and randomly selected 554 employees from Mirpur AJ&K, Rawalpindi and Islamabad, Pakistan. We screened and tested the data received using SPSS version 25 for analysis purposes to measure the strength of the relationships which exist among the studied variables. The findings indicate that all of the proposed hypotheses have significant positive relationships, proving that knowledge sharing and organizational innovation have mediating impacts upon organizational learning. The findings can also be used to propose a systematic and holistic framework for attaining an improved performance in Islamic banks through the mediating role of organizational learning. This study offers empirical evidence and original data to examine the connection between knowledge sharing, innovation processes and learning culture in Islamic Banks. The generalizability of these findings is restricted to Islamic banks, and the study delivers valuable insights and suggestions for imminent research studies.

63 citations

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the relationship between human resource practices and knowledge sharing behavior in the public sector, including the moderating role of trust in supervisor, and found that HR practices and trust in the supervisor play pivotal roles in promoting knowledge sharing behaviour.
Abstract: In the era of the knowledge-based economy, knowledge management has increasingly captured the interest and attention of researchers and practitioners. In addition, knowledge sharing behavior has been recognized as an important element of knowledge management. However, few studies have explored knowledge sharing behavior in the public sector. Using the Federal Employee Viewpoint Survey data, this study investigates the relationship between human resource (HR) practices and knowledge sharing behavior in the public sector, including the moderating role of trust in supervisor. The authors find that HR practices and trust in supervisor play pivotal roles in promoting knowledge sharing behavior. In addition, results show that trust in supervisor moderates the relationships between HR practices and knowledge sharing behavior. The implications of these findings are thoroughly discussed in this study.

62 citations

Journal ArticleDOI
TL;DR: In this paper, the authors identify the relationship between human resource development and one of its closely related fields, adult education, and argue that it is adult learning theory that provides a foundation and linkage for both fields.
Abstract: The problem and the solution. The field of human resource development (HRD) has been viewed as being supported by three theoretical foundations—namely, economic, psychological, and system theories. Although contributions of adult learning theory have been long acknowledged, it is more important to recognize its unique role of incorporating three theoretical foundations and consequently providing a distinct foundation of HRD. By identifying the relationship between HRD and one of its closely related fields, adult education, this article argues that it is adult learning theory that provides a foundation and linkage for both fields.

62 citations

01 Jan 2003
TL;DR: In this article, the authors present a general instrument for evaluation of knowledge management projects. But they focus on three points at which evaluation of KM projects can, and should, be, done: (1) when deciding whether to start and where to focus, (2) once under way, following up on a project and making adjustments if needed, and (3) when completed, to evaluate the project outcomes.
Abstract: Many knowledge management (KM) projects have been initiated, some of which have been successes but many have been failures. Measuring the success or failure of KM initiatives is not easy, and in order to do so some kind of measurement process has to be available. There are three points at which evaluation of KM projects can, and should be, done: (1) when deciding whether to start and where to focus, (2) once under way, following up on a project and making adjustments if needed, and (3) when completed, to evaluate the project outcomes. This paper concentrates on the first two areas by developing a general instrument for evaluation of KM projects.

62 citations